The Central Board of Indirect Taxes (CBIC) has issued a notification to decrease the Special Additional Excise Duty on Diesel.
On Friday, the Central Government has lowered the windfall tax on sale of domestic crude oil by a sharp 21% to 10,500 a tonne in line with the reduction in global oil prices seen in the last fortnight.
As per the notification issued on Friday, the Government lowered the special additional excise duty on export of diesel from ₹12 a litre to ₹8.5 a litre. The changes are effective from Saturday.
As per the notification, “In exercise of the powers conferred by section 5A of the Central Excise Act, 1944 (1 of 1944) read with section 147 of Finance Act, 2002 (20 of 2002), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 04/2022-Central Excise, dated the 30th June, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 492 (E), dated the 30th June, 2022, namely:- In the said notification, in the Table,- (i) against S. No. 2, for the entry in column (4), the entry “Rs. 8.50 per litre” shall be substituted.”
Crude oil prices have declined in the past two weeks amid demand concerns from China as the country witnesses a surge in Covid-19 cases and fresh lockdowns. China is one of the largest oil importers in the world.
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